Loss of Military Work a Factor : 250 Workers Laid Off at Dynamics Unit

Stung by the loss of $500-million worth of potential military contracts, the General Dynamics division in Pomona has laid off 250 white-collar workers as part of a wide-ranging cost-cutting plan, company officials said Friday.

"We have lost key contracts," company spokesman Eric Solander said. "We were underbid because of cost. We just want to get the cost of the product down--a reduction in force was necessary."

The division recently failed to win such contracts as those to build the Sparrow air-to-surface missile and to upgrade Standard ship-to-air missiles.

Layoff notices were sent out last week to some engineers and other support staff, said Solander, who added that a hiring freeze is in effect for non-manufacturing jobs.

"I think that is the extent of (layoff) notices at the present time," said Solander.

Manufacturing and hourly employees are not affected by the cutbacks.

Managers at the Pomona division, which employs 8,200 workers, are also looking at ways to cut costs in other areas, ranging from materials to travel budgets. "Everything is is being looked at," said Solander.